O'Reilly logo

You Only Live Once by Jason Vitug

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 8 Improving Credit Use and Eliminating Debt Forever

The most effective debt-elimination strategy is a change of mindset. A few years ago, I was managing my finances based on my credit score. I was young and uninformed. I had a score in the high 700s and held a stable job. I would apply for credit and get approved. I judged my financial well-being by my ability to get approved for credit. At the time, I really thought that this was what it meant to manage finances well. However, my reliance on credit to supplement my lifestyle soon resulted in debt.

I remember looking at my credit card statements and wondering why the balances remained the same. So I did what I thought was a smart financial move: I consolidated my debt into one loan. My six credit card statements were consolidated into one payment per month. I rejoiced at the idea that I would be debt free in 36 months. But that’s not the way things worked out. Instead, I eventually found myself with a debt-consolidation loan payment and new credit card payments.

I thought I had resolved my original credit card problem, but consolidating my debt hadn’t addressed the underlying issue that caused the debt in the first place: my money mindset. Without addressing your mindset on credit and debt, no debt elimination strategy will remain effective. The debt cycle will continue.

Eliminating debt doesn’t just improve your financial life, it improves your entire life. If you’re holding debt, then you may find it more difficult ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required